Italian government fails to agree fiscal correction measures

ROME, Sept 27 (Reuters) - Italy's fragile coalition government failed at a meeting on Friday to agree on measures needed to avert a sales tax increase and rein in an overshooting budget deficit, a government source told Reuters.

"The conditions aren't in place at the moment," the source said while the cabinet meeting intended to approve the measures was still in progress.

The source added that only if parliament expresses its backing for Enrico Letta's government next week will it be possible to approve the legislation aimed at bringing the deficit inside the European Union's 3 percent ceiling.